Daily Independent (Lagos)
Aaron Ukodie
19 November 2008
Lagos — Nigerian Telecommunications Limited (NITEL) shareholdings conceded to workers of NigComSat, Investment International London Limited (IILL) and NITEL from the government's share of 49 per cent may alter the plan to privatise the first national carrier.
The Federal Government recently announced that it has sliced 15 per cent from its 49 per cent share of NITEL to NigComSat.
Also, a negotiation between the government and IILL arising from a court ruling had granted 6.9 per cent stake in NITEL to IILL, which failed to pay $1.3 billion to buy NITEL when it was offered to it in 2002.
The 6.9 per cent represents the conversion to equity of the $131.7 million representing 10 per cent IILL made as down payment to buy NITEL.
About four per cent has also been offered to NITEL workers.
However, the government may have asked BNP Paribas, the privatisation consultant, to either stop the process or at least slow it down.
Bureau of Public Enterprises (BPE) Director General, Irene Chigbue, gave credence to this when she told Daily Independent on Tuesday that she could not give new timelines on when the exercise will be achieved.
The BPE was initially upbeat that it could conclude the sale between December 2008 and February 2009.
Chigbue insisted, however, that the BPE is committed to the exercise and that there is no indication from the government or Transcorp to suggest that they are reneging on the bid.
Nevertheless, it is undeniable that both the government and Transcorp are yet to agree on the grey areas.
Sources said on Tuesday that if these issues are not satisfactorily resoled they could put a wedge on the process once again.
A meeting is scheduled for December 1 at which parties relevant to the NITEL privatisation process will deliberate on the matter.
Transcorp is reported to be interested in knowing from the government the effects of the new shareholders, what percentage the government will concede to the core investor, and how much Transcorp is expected to release.
Transcorp is also demanding that the government asks its agencies to pay over N5 billion owed NITEL.
And it wants to know why the government has not committed any fund to NITEL, as Transcorp claims it has committed N5 billion so far to revamp the company.
It is at the meeting that Transcorp will make its position known to the BPE's request to sign a power of attorney ceding a chunk of its 51 per cent shares to be put on the table for offer to the core investor.
Both the BPE and Transcorp told Daily Independent on Tuesday that the BPE offer has not been rejected by Transcorp.
The offer was made to Transcorp at a recent NITEL board meeting where Tom Iseghohi, Transcorp Group Managing Director, sits as Chairman.
Iseghohi was said to have told the BPE and NITEL board that he will take the request to Transcorp board.
Chigbue said "Transcorp has not told us that it will not sign the power of attorney document. We have made the request to them."
But Iseghohi stressed that "we have not signed anything."
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